Ecuador's Tariff, Border Shutdown Escalate Tensions With Mexico

Ecuador’s President, Daniel Noboa, announced that he has instructed the implementation of a 27% tariff on all products imported from Mexico, along with the closure of the country's borders, set for Feb.8.

“We maintain our commitment to signing a Free Trade Agreement with Mexico. However, until this agreement becomes a reality, we will apply a 27% tariff on imports to support our industry and ensure fair treatment for our producers,” stated the Ecuadorian president.

Noboa also shared that he has ordered the militarization, closure, and reinforcement of the country’s borders for three days due to “destabilization efforts by armed groups.” The president did not provide additional information on whether there is a specific cause behind the border closure. This measure will be effective from Feb. 8, until Feb. 10.

During her morning conference, Sheinbaum minimized Ecuadorian measures against Mexican goods, remarking that Mexico imports a minimal amount from the country.  "I believe it is 0.4% of our commerce. To be honest, the shrimp from Sinaloa is far superior to that from Ecuador."

In response, José Antonio Camposano, President of the Chamber of Aquaculture, Ecuador, said "We respect Mrs. Sheinbaum's personal preference, although it seems the global palate tends to be more refined. Ecuadorian shrimp is favored in over 60 countries and is highly regarded by chefs and culinary experts," he wrote on X.

Ecuador-Mexico Diplomatic, Commercial Tensions

In April 2024, Mexico and Ecuador broke diplomatic relations after Ecuadorian forces forcibly entered the Mexican Embassy to apprehend former Ecuadorian Vice President Jorge Glas, who is accused of corruption. Tensions between the two countries started when former President López Obrador suggested that the electoral success of Ecuadorian President Daniel Noboa was due to the assassination of former Ecuadorian presidential candidate Fernando Villavicencio. In response, Ecuador declared Raquel Serur, Mexican Ambassador in Ecuador, “persona non grata,” making Serur leave the country without delay.

According to government data, in 2023, Mexico's exports to Ecuador reached US$595 million, while imports from Ecuador totaled US$228 million, resulting in a trade surplus for Mexico of US$368 million. In November 2024, Mexico's main export to Ecuador was compounded or unblended medicines, formulated for therapeutic or prophylactic use, valued at US$5.06 million. Meanwhile, the most imported product by Mexico from Ecuador in that month was confectionery products without cocoa and white chocolate, worth US$1.34 million. 

Mexico and Ecuador previously made efforts to strengthen their commercial relationship during Guillermo Lasso's presidency, but the process stalled when López Obrador's declined to include shrimp and bananas in the deal. With the breakdown of diplomatic relations under Noboa’s presidency in Ecuador, experts stay it has become difficult to finalize this trade agreement.